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Drs. McCain and Gramm Put the U.S. Economy on the Couch; Gramm Diagnoses a "Mental Recession" Among U.S. "Whiners"

July 10, 2008 9:56 AM

Is there a doctor in the house?

A top economic adviser to Sen. John McCain, R-Ariz., -- former Sen. Phil Gramm, R-Texas, now vice chair of Swiss banking giant UBS -- tells the Washington Times  that the US economy is being weighed down by the belief by Americans that the economy is bad.

"You've heard of mental depression; this is a mental recession," Gramm tells the Washington Times, adding that despite all the bad news out there US economic growth continues at a rate of approximately 1 percent. "We may have a recession; we haven't had one yet."

Adds Gramm: "We have sort of become a nation of whiners. You just hear this constant whining, complaining about a loss of competitiveness, America in decline...We've never been more dominant; we've never had more natural advantages than we have today...Misery sells newspapers. Thank God the economy is not as bad as you read in the newspaper every day."

This comes on the heels of McCain himself saying of economic distress, "a lot of this is psychological. Because I agree the fundamentals of our economy is still strong.” (Watch HERE.) 

McCain repeated that notion in an idea with Fox News' Neil Cavuto, saying "a lot of our problems today, as you know, are psychological — the confidence, trust, the uncertainty about our economic future, ability to keep our own home." He said his proposed gas tax holiday "might give them a little psychological boost. Let’s have some straight talk, it’s not a huge amount of money.” (Watch HERE.)

McCain last month said that off-shore drilling might have a "psychological" affect as well on the U.S. economy. (Watch HERE.)

Prozac policies?

DNC spox Karen Finney today says: "What John McCain, George Bush  Phil Gramm just don't understand is that the American people aren't whining about the state of the economy, they are suffering under the weight of it - the weight of eight years of Bush-enomics that John McCain and Phil Gramm have vowed to continue. How dare John McCain and his advisers so callously dismiss the challenges the American people face. No wonder voters feel John McCain is out of touch, he and his campaign don't even understand the everyday issues Americans are dealing with."

- jpt

UPDATE: Obama spox Bill Burton reacts to Gramm's and McCain's comments: “One of Senator McCain’s top economic advisors may think that when people are struggling with lost jobs, stagnant wages, and the rising costs of everything from gas to groceries, it’s merely a ‘mental recession’. And Senator McCain may think it’s sufficient to offer energy proposals that he admits will have mainly ‘psychological’ benefits. But the American people know that our economic problems aren’t just in their heads. They don’t need psychological relief – they need real relief – and that’s what Barack Obama will provide as President."

 

July 10, 2008 | Permalink | Share | User Comments (390)

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It is truely said when you have people like McCain, Bush, and Gramm, who are out of touch with the real world and society. They live in glass bubbles and don't want to know whats happening around them. A president has to be opened minded. That goes for the media nad journalist as well. The Republican part is way out there and out of touch with the world, not just the US, but the world.

Posted by: Brenda | Jul 22, 2008 11:56:55 AM

the only people that'll be whining are the ones he makes go back to school for a trade or back to work. the rest of us will be crying because we're so happy!!!!!!!!! Humanitarianism First!!

Posted by: augusta | Jul 19, 2008 5:00:24 AM

you all are whining about him calling you whiners, how ironic.

Posted by: poobah | Jul 13, 2008 6:57:30 PM

MAKE EVERYONE SERVE TIME IN THE MILITARY WITH NO EXCEPTIONS . anyone who cant serve in the military for whatever reason should do public service (trash collecting, cleaning public areas, etc) for the same amount of time . no exceptions for status or wealth , all applications for enlistment should be done strictly anonymously with no reference to the enlistee other than a serial number ,that would ensure fairness.

EVERYONE SHOULD GET USED TO GIVING SOMETHING BEFORE THEY EXPECT SOMETHING FROM THIS GREAT COUNTRY ,EVEN THE RICH AND ELITE.

once EVERYONE,NOT JUST THE POOR AND DISADVANTAGED learns that this great country owes no one anything without due effort ,and not to expect a free ride ,either as a hand out to the lazy or as a government approved nod to the rip off/con- artist/tax avoider /financial schemer etc etc , then we will be much further along as a nation ,and better as people as well .


Posted by: bah | Jul 11, 2008 3:14:14 PM

*********************************
Too bad this wasn't enacted when Limbaugh
weaseled himself out of the military

Posted by: spacerook1 | Jul 11, 2008 10:02:49 PM

You know, it's kind of fun to read these stupid statements and then make even stupider comments... as evidenced by reading 99% of the above. Do stupid comments by people like Gramm or Jackson effect how you feel about your candidate of choice?

Posted by: HeyYou | Jul 11, 2008 8:19:00 PM

"If the economy is so great and robust why is Starbucks closing 600 stores with 12,000 losing their jobs? Why is General Motors stock the lowest since 1954"
Well maybe there are way too many Starbucks stores. You don't need one on every corner. Just a thought. GM may be down, but how are Honda and Toyota doing?

Posted by: Mack | Jul 11, 2008 4:18:15 PM

If the economy is so dire and grim, why are there people waiting in line, like cattle, to buy a new iphone? I guess those are all the iced tea drinking fat cats.

Posted by: Mack | Jul 11, 2008 1:59:18 PM

******************************

If the economy is so great and robust why is Starbucks closing 600 stores with 12,000 losing their jobs? Why is General Motors stock the lowest since 1954? Get a clue we need to get rid of the republican crew.

Posted by: HoosierSue | Jul 11, 2008 3:39:57 PM

sylvester, the truth is that time warner (cnn,and others ) , disney (abcnews) and general electric(nbc) ,supply most of what is read , seen or heard as news in this country ,to a large degree anyway.

ahh what a country!

THANK GOD FOR THE INTERNET!

Posted by: bah | Jul 11, 2008 3:32:08 PM

anti mccain spin!

i think patb ,that maybe he opened mouth ,inserted foot , and that is what really happened today ,again, par for the course for jm.

hes a fat cat , thats why i wont vote for mccain . hes mostly interested in keeping the boat on the same course ;that is ,making lots of rich folks richer while the country spirals downwards for everyone else.

politically hes got some decent ideas,mostly to promote growth ,ie; more money for his fat cat buddies ,but nothing nearly in line with what this country needs presently.

Posted by: bah | Jul 11, 2008 3:22:45 PM

steve ,the best was the 2 years military service. i noticed that one of the royals, kids over in england was in afghanistan , on the front line even , so brave and proud and so unlike the american rich/elite who are ,it seems, mostly cowards who are unwilling to serve anyone or anything but their own short-sighted interests or the interests of some fat cat buddy.

MAKE EVERYONE SERVE TIME IN THE MILITARY WITH NO EXCEPTIONS . anyone who cant serve in the military for whatever reason should do public service (trash collecting, cleaning public areas, etc) for the same amount of time . no exceptions for status or wealth , all applications for enlistment should be done strictly anonymously with no reference to the enlistee other than a serial number ,that would ensure fairness.

EVERYONE SHOULD GET USED TO GIVING SOMETHING BEFORE THEY EXPECT SOMETHING FROM THIS GREAT COUNTRY ,EVEN THE RICH AND ELITE.

once EVERYONE,NOT JUST THE POOR AND DISADVANTAGED learns that this great country owes no one anything without due effort ,and not to expect a free ride ,either as a hand out to the lazy or as a government approved nod to the rip off/con- artist/tax avoider /financial schemer etc etc , then we will be much further along as a nation ,and better as people as well .

Posted by: bah | Jul 11, 2008 3:14:14 PM

The idea that drafting rich kids is interesting.

At what specific income level would you catagorize someone as rich?

Would you be agreeable to allow both sexes to be drafted and placed in combat roles?

Would you make allowances for those who are anti-war to serve in other ways (i.e., scrubbing out bedpans at Walter Reed)?

Posted by: Steve Q | Jul 11, 2008 3:11:29 PM

BAH,

It's a start and let me add:

4) Means-test entitlement programs (i.e., Social Security, Medicare) based on total income and prevent asset-shifting.

5) Flat tax with no deductions, exceptions, oh-by-the-ways, etc.

6) Two years of government service (Civilian or Military) with coverage of tuition, books, and fees for 1st two years of college. For each year beyond the 2, add another in return for school.

Anyone else got ideas to add or share?

Posted by: Steve Q | Jul 11, 2008 2:54:27 PM

TO bah and Steve: There's another very important suggestion. Disentangle the media from the corporate sphere and force it to exist as a single entity. In this manner we might begin getting the truth from the media which presently only twists the truth around to fit the interests of the corporate kindgom.
For example: General Electric owns NBC (and many others.)

Posted by: sylvester_katt | Jul 11, 2008 2:51:53 PM

For you neocons that agree with Phil Gramms 'whining' statement, I have a question for you. Since John McCain has repudiated Gramms remark and has in effect 'thrown him under the bus', are you still supporting John McCain? After all, McCain now seems to be supporting these whiners, at least saying he feels their pain. Just curious, how you are able to justify supporting McCain while defending Gramms remarks without looking like a bunch of hypocrites?

Posted by: Drew Hoffman | Jul 11, 2008 2:49:04 PM

steve ive got LOTS of suggestions. heres a few:

1) reform the political process in this country from the ground up , with term limits and campaign finance reform on the top of the list. enlist the top political educators and teachers ,along with average everyday people to make up a panel that comes up with and implements the reform ideas and proposals that are so desperately and obviously needed , not businesses corporations and lobbyists.

2)remove from office any person who acts in any self serving interest ,and put them in REAL jail (for a long time) and take their belongings,similar to drug prosecutions.that kind of treatment is needed to stop government corruption immediately.

3)make government "by and for the people" in all ways ,first and foremost in all levels of public service.

thats 3 biggies right there, i could go on i guess for quite a while since this country is so screwed up (compared to what it is capable of anyway) but i wont bother...i would be "whining" im sure.


Posted by: bah | Jul 11, 2008 2:36:19 PM

TO bah. RE: your last statement. This is truth succinctly stated clearly as it is. That's the reason I refuse to work (that and the fact I'm retired.)

Posted by: sylvester_katt | Jul 11, 2008 2:32:53 PM

Some people's economic miseries are their own fault, but we must be realistic: not everything that happens to us in this economy is our fault. We could live as frugally as possible and still be strapped for cash. We're spending money on food, gas, and clothes because we NEED them. What are we supposed to do, live in caves or like nomads? The reason we're shelling out more for these necessities is because prices ARE going up! It's not all just in our heads. I know it's not just in my mind because I'm seeing it happen-- at the gas stations, at the supermarket, and just about any place where prices could go up. Given McCain's callous, cruel remarks, he has no business running for president.

Posted by: Veronica | Jul 11, 2008 2:32:42 PM

"Anecdotal evidence for a poor economy?" Lets see the sub-prime mortgage scam which came to be as a result of bush pulling out of all of the regulations set to prevent this. Exorbitant fuel prices. High food prices on the increase. Millions (working people) living worsened life styles since 2000. The rich living more exalted life styles since 2000.

Ancecdotal evidence, in a pig's ###! That's REAL evidence. Also evidence indicating that the Ratpacklican Party is composed of nothing but deceiving and convoluting snakes.

Posted by: sylvester_katt | Jul 11, 2008 2:27:17 PM

First to Sharon: I understand your situation completely with your Mom, Husband, and Son. Your situation requires extra-ordinary care and attention that many cannot provide on their own. That was the idea behind a government safety net (i.e., Social Security, Medicare/Medicade, etc.).

To those who continue to vent without solutions (i.e. WHINE): Thank you for your suggestions, they will be taken under advisement and acted upon in the proper course.

Posted by: Steve Q | Jul 11, 2008 2:17:23 PM

mack , i will agree that most americans over spend. while i dont agree with that i can understand ,as an empathetic human WHY they do it.

see, parents want their kids to be happy and have ,at least some ,or a few of the nice things that the "haves" have.

sure there are some who are just lazy and want a meal ticket , but most people arent that at all ,they are just disgruntled and tired of being used and lied to.

i personally believe there is enough for everyone and that most people will work hard IF THERE IS THE POSSIBILITY FOR UPWARD GROWTH.

but when the large majority of the jobs are underpaid with no potential for significant growth, there is no real carrot so to speak for the american worker to go for ,and that brings along the current state of the nation ,that is ; where the government imports illegals to work ,screwing up the labor market in the process ,telling the american worker they are "whining" or imagining there is a problem ...

what an elitist statement in total, proving beyond any reasonable doubt that anyone who votes mccain/republican is either:
a:rich
b:stupid
c: both a and b

Posted by: bah | Jul 11, 2008 2:16:03 PM

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